[ET Net News Agency, 10 October 2019] DBS Group Research re-initiated coverage on Hang
Seng Bank (HSB)(00011) with a "hold" rating and a target price of HK$172.
HSB is expected to be hit the most in the interest rate downcycle environment, largely
due to its large HKD and USD assets on its balance sheet. The research house said, for
every 50-bp/25-bp decrease in LIBOR/HIBOR would cause HSB's NIM to drop by 10bps, versus
BOCHK's (02388) 7bps, DSBG's (02356) 4bps and BEA's (00023) 3bps.
DBS expects HSB's FY2020 NIM to decline by 6bps to 2.13% as tight liquidity in HK may
help to ease the downside. Given the challenging macro environment and weak domestic
economy, it expects HSB's loan growth to slow to 4-5% in FY2020-21 and deposit growth to
track relatively closely with loan growth given competition for deposits and capital
outflow. (KL)
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00011 HANG SENG BANK
Nominal 
96.050 +0.150 (+0.156%) Others
10/10/2019 15:34
{I-bank focus}DBS restarts Hang Seng Bank (00011) at HK$172
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